G-III Attire shares fall regardless of robust Q3 outcomes on lowered revenenue outlook

NEW YORK – G-III Attire Group, Ltd. (NASDAQ:GIII) reported third-quarter earnings that exceeded expectations, however shares fell 2.75% as the corporate’s full-year income steerage got here in under analyst estimates.

The attire maker posted adjusted earnings per share of $2.59 for the quarter ended October 31, beating the analyst consensus of $2.26. Income rose 1.8% YoY to $1.09 billion, according to estimates.

“I’m very happy with our robust third quarter outcomes, with earnings per diluted share exceeding our expectations, pushed by over 30% natural development of our key owned manufacturers DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin,” stated Morris Goldfarb, G-III’s Chairman and CEO.

Nonetheless, G-III lowered its full-year income forecast to roughly $3.15 billion, under the $3.19 billion analysts have been anticipating. The corporate cited the present macroeconomic setting and unseasonable climate as components behind the diminished outlook.

On a constructive notice, G-III raised its full-year earnings steerage to $4.10-$4.20 per share, up from its earlier forecast of $3.95-$4.05 and above the $4.01 consensus.

The corporate stated it has skilled strengthening sell-throughs throughout its manufacturers because it progressed into the fourth quarter. Inventories decreased 10% YoY to $532.5 million on the finish of Q3.

G-III’s whole debt decreased 52% YoY to $224.2 million, after the corporate redeemed $400 million in senior secured notes in August.

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